“We Have Entered Long-Term Commitments and We Stand By Them”

Friedrich Stift, born in 1961, joined the Austrian Ministry of Foreign Affairs in 1989 after graduating in law and working in the private sector. In the foreign service, he held positions in the United States, Saudi Arabia, Iran and China. He was appointed Managing Director of the Austrian Development Agency (ADA) in June 2021. 

OPEC Fund Quarterly: ADA is the Austrian Development Agency. You are mostly funded by the Ministry of Foreign Affairs, but not formally part of the ministry. What are the advantages and challenges of this type of set-up? 

Friedrich Stift: We are the operational unit of Austrian Development Cooperation, which means that we are responsible for putting into practice the strategies and overall goals of the government. The foreign ministry draws up the strategies and provides us with the bulk of our budget. ADA then implements these strategies in cooperation with other public institutions, civil society organizations as well as universities and the private sector. The benefits of this setup are evident: we have a clear division of labour which allows us to actively shape development cooperation and put the funds to the best possible use.  

OFQ: Please tell us as a bit more about your work? 

FS: We have a total staff of over 300 – roughly two thirds are working abroad, mostly in our priority countries and regions, and the remainder is employed in Vienna. Our offices are mostly based in priority countries or regions of Austrian Development Cooperation and are part of the official Austrian representation network. We also have several project offices in countries where we implement projects for third-party donors such as the European Union – for example in Serbia, where we have rehabilitated the flood protection infrastructure. 

The number of projects and programmes we support varies from year to year. In 2022, we funded 558 initiatives. They are tailored to the conditions in the respective country or region and coordinated with local partners. Our local offices guarantee partnership-based work on the one hand and effective monitoring on the other. This way we make sure that our work achieves the desired results and that every euro is being used effectively and efficiently. 

The way we fund cooperations ranges from project funding and strategic partnerships to multilateral funds that we administrate together with other donors. We are active both in “traditional” long-term development cooperation and in short-term humanitarian aid. 

OFQ: Your three priorities are reducing poverty, promoting peace and protecting the environment. It seems that we are moving backwards on all three fronts. How are you addressing the current challenges? 

FS: We live in uncertain times. The numerous challenges we are currently facing do not make it easy to remain optimistic. Nevertheless, we try. What alternative do we have? “Leave no one behind”, the leitmotif of the Sustainable Development Goals, remains the guiding principle of our work. I continue to believe that international cooperation and solidarity have the potential to tackle the major tasks of our time. 

OFQ: The UN SDG Summit in September in New York gave a devastating account of where the world stands on delivery of the 2030 Agenda for Sustainable Development at halftime. What needs to be done? 

FS: Development cooperation alone will not be able to solve the multiple crises the international community is currently confronted with. We need to look closely at each challenge’s root causes. We need bold, increased financing and reach out to new partners. This way, we still may have a chance to achieve parts of the 2030 Agenda for Sustainable Development. 

OFQ: We have so far cooperated on one project, the South Africa Solar Thermal Training & Demonstration Initiative, in which the OPEC Fund provided two grants. What are the outcomes of that project, would you be interested in expanding cooperation, where do you see opportunities and demand? 

FS: In the Global South, access to affordable, reliable and clean energy is key to combating poverty and meeting people’s basic needs. The SOLTRAIN initiative is one of our flagship programmes in renewable energy in Southern Africa. It helps to reduce energy poverty and protects the environment at the same time. This is urgently needed as a significant share of electricity is still generated from coal. SOLTRAIN focuses on raising awareness of the potential of solar thermal technology and supporting policy development, hands-on training in planning, installing and maintaining of solar thermal systems and demonstrating that solar thermal technology works. 

The results speak for themselves: So far, 5,000 people have been trained in six partner countries: Botswana, Lesotho, Mozambique, Namibia, South Africa and Zimbabwe. In total, 665 demonstration systems have been installed to showcase solar thermal applications in industrial settings as well as in the public health, education, housing and tourism sector. The total collector area of these systems is 6,955 m² corresponding to an installed capacity of 4.9 MWt. 

As you can see: Together we have achieved great success. Needless to say, we would be pleased to explore areas for further cooperation. 

OFQ: Africa is often at the forefront of concerns. Does the international community have to reassess and recalibrate its work in Africa? 

FS: Donor harmonization must remain our ultimate goal. There is no other way to deliver aid effectively – especially when you are operating in a complex context like development cooperation. This core principle becomes even more crucial when rapid responses are desperately needed. We must be cautious not to sacrifice aligned approaches for the sake of speedy reactions. 

OFQ: Migration remains a major challenge, both within and between countries and continents. How does ADA address the issue through its work? 

FS: Development cooperation aims to achieve a better life for all. We are committed to improving living conditions for people in countries of the Global South. Nobody leaves their home country lightly. In many cases, people simply see no other choice. I am convinced that development cooperation can help prevent people from being forced to flee. 

Our aim is to make people who are threatened by the effects of climate change more resilient. Farmers who can no longer make a living from their harvest are supported with improved seeds or training in modern farming methods. We also support small entrepreneurs and agricultural businesses so that they can feed their families from their work. 

Austrian Development Cooperation supports the poorest population groups – and these are usually those who cannot leave their countries. Most refugees remain in developing countries, trying to wait in safe areas close to their homes to return as soon as the danger has passed. We are here to support our partner countries dealing with this exceptional challenge. In Uganda, for example, we have provided a total of €14.7 million between 2017 and 2021 for refugees and also in support of host communities. 

OFQ: Shortly after you started in your new job as ADA managing director in June 2021, Russia attacked Ukraine. How has this affected or even changed the work of your agency? 

FS: Humanitarian aid has become more important, the share of humanitarian aid in our total portfolio has increased. The Austrian government increased its foreign disaster fund from €55 million to almost €109 million in 2022. Out of this, more than €59 million were used for humanitarian aid for Ukraine and its neighboring countries. ADA was responsible for handling most of these funds – a challenging task that we successfully mastered. 

Beyond that, the repercussions of Russia’s war of aggression against Ukraine have serious implications for our work in other countries. The Republic of Moldova, for example, a priority country of Austrian Development Cooperation, is one of the countries most affected by the war. Providing shelter and food for displaced persons from Ukraine is an immense challenge for the Moldovan authorities. We made a serious effort to stand by Moldova and adjusted and increased our financial support for the country. 

OFQ: Now we are confronted with another crisis in the Middle East. What is your assessment? 

FS: We are monitoring the recent events with great concern. Our primary goal is to help the people affected to cope with this situation within the scope of our possibilities and as best as we can. 

OFQ: Last year ADA supported 558 projects with a total volume of €723 million. What are the expectations for this year and the next? 

FS: Our three primary goals – reduce poverty, protect the environment and promote peace – will continue to be at the heart of our work in the coming years. The initiatives we support provide the basis for people to be more resilient, have better prospects for their future and better living conditions in the long run. We have entered long-term commitments with our partners, and we will make sure that we remain true to these obligations. 

Africa and the OPEC Fund

Mauritania: Aftout Al Chargui Rural Electrification Project 

Approved: June 2012

Completed: March 2023

Total project cost: US$30.4 million

OPEC Fund financing: US$11.9 million 

The project supported government electrification targets aiming to further access in urban areas and within the rural population. It also had a second target of generating 15 percent of electricity from renewable sources by 2015, mainly from PV. Main achievements were the construction of a 90 kV transmission line, the construction of a 450 km distribution network and the implementation of related infrastructure. The project delivered the electrification of 5,450 households. 

Benin: Health System Emergency Support 

Approved: August 2020

Completed: December 2022

Total project cost: US$15 million

OPEC Fund financing: US$15 million 

The project supported Benin in its fight against the threats posed by COVID-19 and strengthened the preparedness of the national public health emergency system. It improved the country’s national detection and response mechanism through the acquisition of rapid diagnostic tests, laboratory consumables and drugs for treatment centers. Part of the funding was allocated towards procuring medicine.